#Knoxville #United States #Shareholder Value #Mountain Commerce Bank #Mountain Commerce Bancorp

Mountain Commerce Bancorp Expands Share Repurchase Program

On May 1, 2025, Mountain Commerce Bancorp, Inc. (OTCQX: MCBI), the parent company of Mountain Commerce Bank, announced a significant reauthorization of its share repurchase program. Under this newly approved initiative, the company may buy back up to $5 million worth of its common shares, a decision that reflects its confidence in the business's long-term performance and its commitment to enhancing shareholder value.

Understanding the Repurchase Program

The stock repurchase program is strategic in nature and is designed to provide flexibility in managing the company's capital structure. This program will remain in effect until March 31, 2026. Repurchases can occur through various channels, including open market transactions or private deals, which gives management the ability to act according to market conditions and investor interest, all while complying with applicable securities regulations.

Bill Edwards, the President and CEO of Mountain Commerce Bancorp, stated, "This reauthorization provides us the option to repurchase shares, especially if the pricing is attractive. Buying back shares allows us to manage our capital levels while also offering increased liquidity and potentially enhanced returns for our shareholders."

Factors Influencing the Repurchase Decisions

While the program offers substantial advantages, the actual buying decisions will depend on multiple factors. Key elements influencing the repurchases include:

• - Stock performance: The management will evaluate the company's stock price to determine the appropriate timing for purchases.
• - Capital planning: Continuous assessments of the company’s financial health and future capital requirements will guide the repurchase strategy.
• - Market conditions: Economic indicators, including interest rates and inflation, will also play a crucial role in determining when and how much to repurchase.
• - Legal compliance: Ensuring adherence to laws governing such financial maneuvers is paramount, which impacts the scope and method of share buybacks.

Looking Ahead: Potential Challenges

While the share repurchase program presents opportunities for value enhancement, it also carries its own set of challenges. The company must navigate fluctuating market conditions, the ongoing impact of U.S. and global trade dynamics, and other economic factors that could influence its financial performance.

Some risks identified include:
1. Deterioration in borrower financial conditions: Elevated interest rates and persistent inflation may lead to increased credit losses, affecting capital levels.
2. Trade policies: Changes in tariffs and trade barriers can create uncertainty and volatility in the economic landscape.
3. Interest rate fluctuations: Variability in interest rates on loans and deposits could affect profitability and net interest margins.
4. Market competition: The ability to attract and retain deposits amidst competitive pressures may pose an ongoing challenge.

These considerations are critical, as they underscore the need for prudent decision-making and strategic foresight in implementing the repurchase program. The company remains dedicated to maintaining financial stability while taking steps to enhance shareholder equity.

About Mountain Commerce Bancorp

Mountain Commerce Bancorp, Inc. is a trusted financial institution based in Knoxville, Tennessee, operating under the banner of Mountain Commerce Bank. With a history spanning over a century, the bank prides itself on providing responsive and personalized banking solutions to clients, including small and medium-sized businesses and affluent individuals throughout Middle and East Tennessee. For more information, visit their website at www.mcb.com.

As Mountain Commerce Bancorp maneuvers through its strategic initiatives, the renewed share repurchase program stands as a testament to their commitment to long-term growth and shareholder satisfaction.